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Motorolas Droid 2:

Product Managers
Dilemma
Ankur Kedia
Augustus Martin
Ayush Jain
Ekta Shetty
Harpreet Kaur
Makan
Hari Chandan

Case Introduction

Motorola Droid Success Story


Oct 2009
Motorola launched Droid Smartphone

Dec 2009
Motorolas net income increased by whooping ~99% yoy after
launch of Droid Smartphone

Feb 2010
Following the success of Droid, Motorola started working on
Droid 2 launch

Customer Concerns
Tops reasons for Customer Returns of Motorolas Droid Smartphone

For both Verizon


and Motorola,
launching Droid 2
represents a
strategic doubling
down

It becomes all the


more necessary to
remove the
customer
dissatisfier which
might afect the
sales of Droid 2

Turn on/of
Main Keypad
Side keys (Volume/Camera)
Software Features
Display
Audio
No Complaint
0% 20% 40% 60% 80%

Based on the internal


findings of Verizon
team, customers are
dissatisfied with the
camera button and that
leads to return of
product

Camera Button Issue

Product Differentiation
Form
Slimmer sleek phone
with smoother
keypad
Not as big as iPhone
4 but big enough for
a decent smartphone
45-key slide-down
hardware QWERTY;
vertical and
horizontal on-screen
keyboards
3.7 inches display

Features

Style

1 GH quad core
processor, 480 x 854
pixels (~265 ppi
pixel density)

Polishedmodernvers
ion of its
predecessor

Corning gorilla glass


for protection
Adobe Flash and
HTML browsers
5 MP primary camera
with auto focus
Sleek keypad with
touch screen, multi
touch and QWERTY
keyboard available

Sturdy build with


functional styling
Slightly more
rounded edges

Customer-Value Hierarchy

Core Benefit: To talk to people

Basic Product:

Product Design
Product design is the totality of features that
afect how a product looks, feels, and functions
to a consumer
Motorola Droids camera button acts as a
barrier which afects the value to the customer
Designing features like multi-touch screen, 1
GHz processor, Adobe Flash, 5 MP camera adds
more value to the customer

Product Managers Dilemma


Keep the Current Design
Modify the physical camera
button
Remove the button
altogether

Questions To Answer
Camera Button
User trial
feedback on the
camera button
Droid 2 camera
button vs Droid
1
Internal
usability data
about a
mechanical
camera vs
software button
How to improve
the tactile feel
of pressing the
camera button

Market
Dynamics

Technical
Considerations

Importance of
mechanical button
as a differentiator

Alternative
Solutions

Consequences of
delay

Implications of
removing the
button
Additional
resources
Impact on
Schedule

Customer Value Proposition

Target
Market
Diferentiate
d&
Compelling

Evidences

High end Smartphone Market (Tech Savvy users)

Powerful 1 GHz processor


Android 2.2 Operating System
Flash supported Web Access
Intuitive Keyboard & expandable memory up to 40
GB

Based on Droid's success and end user feedback


from Verizon

User Trial Feedback


Based on Verizons feedback from the end users,
Driods Camera button has a critical issue that need
a corrective action in Droid 2
Driods Camera button has a big size and its tactile
feel is not crisp
Some end users may prefer iPhones approach,
incorporating a software only button on the display
instead of a mechanical button
Button design change request by Verizon was
supported by its usability testing data and subscriber
behavior knowledge

Market Dynamics
From 2009 to 2010, Androids share grew from 27% to 42%
and the increase in the processor speed which Droid 2
ofers could get Motorola in a very competitive position with
Apples iPhone
Rumors of launching iPhone 4 by Apple is also an issue that
is making Motorola to accelerate the launch of Droid 2
They aim to shrink the product development life cycle for
Droid2 from 10 months to 6 months

..Contd
However, modifying the camera button design would force a
slip in the launch date
Design change will not only threaten to delay the launch,
which would have significant financial implications, but could
potentially create deep fissures in the collaborative
environment of the cross functional team
Decision has to taken keeping in consideration
Objective assessment of pros and cons of the options
The financial implications of extending the market window to
slip the launch date by one week or more
Inputs from each team on the impact of resolving this issue
and delaying the launch

Industrial
Design
Team
Customer
Support
Team

Marketing
Team
Decision
Engineerin
g
Team

Account
Manager
Supply
Chain

Customer Support Team

CUSTOMER SUPPORT TEAM


Minutes of the meeting held with Verizon

Significance of the issue

Verizons expectations

Customer supports recommendation

Marketing Team

Industrial Design Team

Trade offs :
Mechanical Button :
May lose the customers who prefer software
only button like iphone
Higher price due to change in design
Delay in launch due to change in design,
approx 3 weeks
Software-only button :
May efect the relationship between Motorola
and Verizon
Higher price due to change in design
Delay in launch due to additional feature,
approx 6 weeks

Engineering Team

Recommendations by
engineering team
3 Camera buttons available in the market
a)Software button (on screen)
b) Hardware button ( like droid)
c) a mix of both
Impact of software only button
a) less chances of button getting broken
b) Users wont have to handle such huge button

Supply Chain/Manufacturing

Account Manager

Account Managers comments


Impact on droid 2 volume and sales
The average selling price/unit will down by 20 %
The initial shipping volume will go down by 10 %
Revenue hence will go down by :
~1- 0.8*0.9=0.28 *100 =28 %
Impact on long term relationship
Verizon might break their bond with Motorola
Motorola henceforth might lose a lot of revenue

Recommendations

Keeping the current design


Pros :
No delay in launch
No extra efort by industrial design team and the
engineering team
Cons :
Relationship with Verizon may be adversely efected
Lose on the market share due to dissatisfied users of Droid
Revenue may decrease by approximately 28%
Negatively impact co-marketing budget

Modifying the camera button to improve its tactile feel

Pros :
End users satisfaction would increase
Relationship with Verizon may not be efected

Cons :
Launching Schedule impact a slip in launch date
Cost Impact due to design change

Removing mechanical camera


button
in favor of a software only button
Pros :
Attracts the users who prefer software only button
Expected Increase in Revenue due to strong competing
characteristics for the tech savvy smartphone market
Cons :
Slip in launch date
May negatively impact the collaborative environment
among the teams

THANK YOU